The unit product cost for Job K818 is closest to:

A) $51.90
B) $259.50
C) $232.00
D) $119.50

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base)= $162,000 + ($2.80 per direct labor-hour × 60,000 direct labor-hours)= $162,000 + $168,000 = $330,000
Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base = $330,000 ÷ 60,000 direct labor-hours = $5.50 per direct labor-hour
Overhead applied to a particular job = Predetermined overhead rate x Amount of the allocation base incurred by the job = $5.50 per direct labor-hour × 50 direct labor-hours = $275